Since 2013, Venezuela has been experiencing shortages of food, new cars, secondhand cars, and other consumer goods. These shortages are partly the result of _____ on these goods.

Question

Quizplus · Accepted Answer

Price ceilings, or government-mandated maximum prices, have been imposed on many consumer goods in Venezuela in an attempt to make them more affordable for the population. However, these price ceilings have led to a decrease in supply as producers find it unprofitable to sell their products at the mandated prices, resulting in shortages.

Since 2013, Venezuela Has Been Experiencing Shortages of Food, New